Saudi Roundup: Local Content Gains Across Government Procurement

This week’s Saudi Roundup highlights FDI surpassing SAR1 trillion in Q1 2026, the Sports Boulevard’s $186 million initiative to develop urban Wadi assets, and the Kingdom’s growing position as a global hub for AI investment.

General Business & Economy

70% Saudization Mandated For Project Management Professions From Feb. 14, 2027

Saudi Arabia will introduce a 70% Saudization requirement for project management professions in the private sector starting February 14, 2027, the Ministry of Human Resources and Social Development announced Sunday. The decision, implemented in partnership with the Ministry of Municipalities and Housing, applies to private sector establishments employing three or more workers in the targeted professions.

Saudi FDI Surges 12% to SR1.123 Trillion by End of Q1 2026

The stock of foreign direct investment (FDI) in the Saudi economy reached approximately SR1,122.8 billion by the end of the first quarter of 2026, marking a 12% increase compared with the same period in 2025. The report also showed that total foreign investment in the Saudi economy rose to SR3,530.8 billion by the end of the first quarter of 2026, representing an 18% increase compared with the same period last year.

Government Tenders Under Local Content Rules Hit $16.8bn in Q2

The number of government tenders launched in Saudi Arabia that were subject to local content mechanisms reached around 8,600, with a total value of SR63 billion ($16.8 billion) in the second quarter of this year. The data showed that the Local Content and Government Procurement Authority signed five agreements during the same period under the industrial localization and knowledge transfer contracting mechanism, with a combined value exceeding SR1 billion ($266.7 million).

Saudi Arabia Ranks Among World’s Top 10 for Private AI Investment: World Bank

Saudi Arabia ranks among the world’s top 10 countries for private AI investment, according to the World Bank Group’s 2026 World Development Report. The report also identifies the Kingdom as an attractive destination for AI talent and a model for government data integration. The recognition reflects Saudi Arabia’s broader national strategy under Vision 2030, which focuses on building a data- and innovation-driven economy supported by advanced computing capabilities. These efforts are strengthening the Kingdom’s position in developing and shaping the future of artificial intelligence.

Rail Passenger Traffic Jumps 16% in First Half of 2026

Saudi Arabia’s rail network carried more than 83 million passengers in the first half of 2026, marking an increase of at least 16% compared with the same period last year. Rail services carried more than 45 million passengers in the first quarter and 38 million in the second quarter, compared with more than 35 million and 36.5 million, respectively, during the corresponding quarters of 2025.

Construction & Real Estate

More Than 1,600 Foreign Contractors Enter Saudi Market

The number of foreign contracting companies that have entered the Saudi market has reached 1,648 since the establishment of the Saudi Contractors Authority, while the total number of local and foreign contracting companies registered with the authority has reached 140,000 entities. Saudi Arabia’s contracting sector contributes around 8% of gross domestic product, making it one of the country’s largest economic sectors. The value of contracting projects is expected to exceed SR3 trillion ($800 billion) over the next three years.

Sports Boulevard Launches $186m Fund to Develop Urban Wadi Assets

The Sports Boulevard Real Estate Development and Investment Co. has signed agreements with Rikaz Properties to establish its third real estate investment fund, valued at more than $186 million, to develop key assets including a luxury five-star hotel in Riyadh’s Urban Wadi. The fund will finance the development of the hotel in the Hittin district, with Rikaz Properties serving as the developer and investor and Al Jazira Capital acting as the fund manager.

Business Expansions

UK Transport Consultancy The Hub Expands into Saudi Arabia

The Hub – Transport Advisory, a UK-headquartered specialist transport sector consultancy, has expanded into Saudi Arabia with the support of AstroLabs, the Gulf’s leading business setup and growth platform. The move marks a significant milestone in The Hub’s international growth, aligning with the National Transport and Logistics Strategy’s vision to position Saudi Arabia as a global transport and logistics hub.